AndersG
Active member
You need to pay tax where the tax treaty says it should be taxed for that type of income. Not everything will be taxed in Greece.
DEPKA in Greece
- Thread starter jaba
- Start date
nortada
Well-known member
Does the treaty recognise that British Government pensions should be taxed at source (ie in the U.K.)
Tony Cross
Well-known member
According to my Greek tax accountant, yes. The UK state pension is not taxed in Greece because it is taxed in the UK.Does the treaty recognise that British Government pensions should be taxed at source (ie in the U.K.)
jordanbasset
Well-known member
Interesting situation in Cyprus, where you are taxed on your state pension there instead of the UK. Means tax at just 5% on your pension, but you only get a €3,420 tax free allowance
AndersG
Active member
I have not read it but most tax treaty has government and public pensions taxed at source. Income from property usually where it is and government bonds are often taxed by the country that issued them.Does the treaty recognise that British Government pensions should be taxed at source (ie in the U.K.)
Tony Cross
Well-known member
Interestingly, Greece doesn't tax any pension paid by the UK government, so those ex-military whose pensions are also paid by the government pay no tax on them in Greece either. I have a couple of ex-military friends here who are smiling all the way to the bank...!
nortada
Well-known member
Don’t understand this.
From personal experience, by default, military pensions are taxed at source by the U.K. If you elect not to pay tax on your military pension to the U.K., then your as supposed to pay tax to your host country.
Tax authorities do speak with each other so what are they smiling about
nortada
Well-known member
The U.K. doesn’t directly tax your State Old Age Pension. Rather it reduces your tax free allowance by a sum equal to your State Pension - same result.
Although, I haven’t done it, I understand it is possible to elect to have your State Pension tax liability transferred to your host country.
This means your could have your government pension(s) tax liability set against your U.K. Tax free allowance (£12,500 pa) but your State Pension tax liability set against your host country’s tax allowance.
Tony Cross
Well-known member
I only know what they tell me and they tell me their military pensions are not taxed in Greece because Greece doesn't tax a pension paid directly by the UK government.Don’t understand this.
From personal experience, by default, military pensions are taxed at source by the U.K. If you elect not to pay tax on your military pension to the U.K., then your as supposed to pay tax to your host country.
Tax authorities do speak with each other so what are they smiling about
nortada
Well-known member
Duplicated
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nortada
Well-known member
Agree, but their pensions will be taxed by HMRC.
If they request the U.K. pays their pension gross, they will be asked, where they are paying tax.
Clearly, if they are getting around this, many liveaboards, including me, would be very interested to hear how they are managing this
If they request the U.K. pays their pension gross, they will be asked, where they are paying tax.
Clearly, if they are getting around this, many liveaboards, including me, would be very interested to hear how they are managing this
Tony Cross
Well-known member
I'll ask then - but not until the (proper) lockdown we have here ends of course.Agree, but their pensions will be taxed by HMRC.
If they request the U.K. pays their pension gross, they will be asked, where they are paying tax.
Clearly, if they are getting around this, many liveaboards, including me, would be very interested to hear how they are managing this
nortada
Well-known member
I'll ask then - but not until the (proper) lockdown we have here ends of course.
Thanks - if they have a loop-hole would love to use it.
Tony Cross
Well-known member
I've emailed one of them and they do pay tax on their military pensions in the UK. What they're so happy about that that it counts towards their tax free allowance in the UK - as does the state pension. My (non-military) pension has to be taxed here in Greece.....Agree, but their pensions will be taxed by HMRC.
If they request the U.K. pays their pension gross, they will be asked, where they are paying tax.
Clearly, if they are getting around this, many liveaboards, including me, would be very interested to hear how they are managing this
nortada
Well-known member
grumpygit
Well-known member
TC, regarding the My/my and to be clear which quote is the correct one . . . .
Tony Cross
Well-known member
Both are correct. My UK state pension is not taxed in Greece (but is in the UK) and my personal pension (not military) is taxed in Greece.
grumpygit
Well-known member
Cheers for this Tony
nortada
Well-known member
Being pedantic, I believe all government pensions (police, fire, civil service etc), not just military, by default, are taxed at source in the UK but if requested, the government pensions pay agency will pay pensions gross. Then HMRC will advise another national tax agency so they can exact tax under their rules.
In some situations this could be advantageous to the pensioner.
grumpygit
Well-known member
Can you be a tad more pedantic please. IYO which brackets or tax liability would you think personal savings should go into?
Say at the moment being a forced Greek tax resident with temporary residency overstaying the 180 days because of travel restrictions with the pandemic, and already having savings in a UK bank a/c and transferred to a Greek bank a/c.
